The Treasury has been criticised for a proposal calling for HBOS, Lloyds TSB and Royal Bank of Scotland (RBS) to resume lending to homeowners and small businesses “at 2007 levels”.

Let’s hope this is a misrepresentation or an error. See also the CML:

The CML doubts whether, in the current market where house prices have been falling and demand has reduced, it would be either prudent or desirable for the volume of lending to home-owners to equate to 2007 levels. The CML assumes that the reference is a more generic aspiration to achieving a broad, deep mortgage market in general with a good spread of products enabling access to the mortgage market for all credit-worthy borrowers – and this would be an aspiration that the CML wholeheartedly supports.

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